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Kids and crafts are always a perfect match at any party. For this bash, think about projects that are school-related:
Decorative pencil cases. Pick up a bunch at the dollar store along with an assortment of stickers. Make a cushion for the contents by cutting a piece of felt to fit the bottom. Have new pencils on hand to fill up with.
Canvas tote bags. Have kids work to decorate plain tote bags, available at craft stores. Use fabric paint and stencils to create designs or incorporate iron-on patches, studs and crystals as well. Just be sure an adult takes care of all the ironing!
Easy bookmarks. Look for large sheets of stiffened felt at craft stores and pick up pre-cut, stick-on felt shapes. Cut stiffened felt into bookmark sizes and then have the kids decorate with stick-on shapes such as stars, sports equipment, animals and other designs.